Explain how beta is calculated

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Should you borrow $1,000 at 5% to purchase a machine that will last two years. Each year the machine will earn you $260 dollars. At the end of the two years you can sell the machine for $500. Show your work and explain.

What are the most relevant considerations in determining what a firm's ideal capital structure is? (define WACC and Modigliani-Miller theorem in your answer)

Using CAPM explain which is your best choice:

Deposit $100 with a risk free 2% investment or medium risk(systematic risk) at 8% or a high risk investment at 15% Show your work and explain.

In your explanation explain how beta is calculated.

List and explain for each suggestion 6 factors commonly considered to assess a company as an investment

Reference no: EM133056611

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